Yesterday’s signals were not triggered, as unfortunately the bullish pin candlestick on the hourly chart which rejected the support level identified at 1.1596 happened too late, at the London close.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today, over the next 24-hour period only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1666 or 1.1732.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1596.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
EUR/USD Analysis
Yesterday saw a flow into the U.S. Dollar which drove this pair down. The price respected the technicals over the day, falling from the resistance level at 1.1666 and later making a nicely obvious bullish U-turn at the London close on the support level at 1.1596. Looking at the price chart, it seems that the action is still broadly consolidative, with the price swinging up and down quite regularly, despite the long-term bearish trend. Overall, I think the short-term picture looks a little more bullish than bearish, but there is little reason to have any directional bias right now. There is no news due today, so the market might be slow.
There is nothing important due today concerning either the EUR or the USD.